DC engines need new NA home

DaimlerChrysler AG's joint venture with Hyundai Motor Co. Ltd. and Mitsubishi Motors Corp. to develop a global engine to power future generations of small cars is homeless in the North American Free Trade Agreement (NAFTA) region. DC already has given production responsibilities to Hyundai and Mitsubishi for the Asian markets.

But a decision still has to be made on the structure by which production will take place in North America — whether it is through a joint venture facility or a Chrysler Group plant. “NAFTA is still up for grabs,” Richard Chow-Wah, Chrysler Group vice president-powertrain manufacturing, tells Ward's.

He says Chrysler is undecided whether it will construct a new facility to produce the engine or if it will be placed in a current Chrysler plant. The program, however, remains on schedule, Chow-Wah says.